"Demand-side benefits of scale are the only important barrier to entry a web business can build up"
This is a great post. There was lots of thought previously that network effects could be built using vendor lock in (switching costs), first mover advantage (technological advantage), and preemption of scarce assets. Demand-side benefits of scale really are a preemption of scare assets, whether it is consumer attention or positioning in the app store. @bwertz has provided a great summary of why the rush for traction and the prevention of others that matter. #mustread